Fragrance

Fragrance: 1Q14 net profit increased 37.6% y/y to $24.3m while revenue increased 12.9%, contributed by Property segment (+15.6%) at $111.5m from projects like Urban Vista, Kensington Square and Suites @ Bukit Timah. This was offset by a reduction of Hotel revenue which fell 5.4% to $13.8m. In the resi property sector, buyer’s sentiments continued to be gloomy, but as interest rates are still low, demand from genuine buyers should remain stable. The hotel sector is expected to fare better than last year, with demand likely underpinned by events such as the World Club 10s Rugby in Jun and WTA Championships in Oct. Fragrance trades at 1.4x P/B